In comparing an ordinary annuity and an annuity due, which of the following is true? a. The future value of an annuity due is always less than the future value of an otherwise identical ordinary annuity, since one less payment is received with an annuity due. O b. The future value of an annuity due is always greater than the future value of an otherwise identical ordinary annuity. c. The future value of an ordinary annuity is always greater than the future value of an otherwise identical annuity due.
In comparing an ordinary annuity and an annuity due, which of the following is true? a. The future value of an annuity due is always less than the future value of an otherwise identical ordinary annuity, since one less payment is received with an annuity due. O b. The future value of an annuity due is always greater than the future value of an otherwise identical ordinary annuity. c. The future value of an ordinary annuity is always greater than the future value of an otherwise identical annuity due.
Chapter5: The Time Value Of Money
Section: Chapter Questions
Problem 3QTD
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